Lessor M&A will 'shakeout' investors eyeing quick returns: ALC

Air Lease (ALC) views mergers and acquistions in the leasing market as positive developments that will help separate committed financiers from those looking for short-term profits.

"In the last year alone, we have seen two businesses acquired by Japanese financial institutions. We view this as a positive for the whole space as they bring fresh capital to our industry and increase our global presence," said Steven Udvar-Házy, chairman and chief executive officer of ALC during a third quarter earnings call.

"We would not be surprised to see further M&A transactions occur as certain players look to sell and others look to buy. This will help shakeout the long-term players from those in the business to generate quick returns," he says.

Air Lease Corporation "will evaluate any opportunities that present themselves", but says it remains focused on the "core business of ordering new aircraft directly from the manufacturers."

During the quarter, ALC took delivery of five aircraft from its new order pipeline and ended the period with 142 units.

The lessor will receive 11 aircraft deliveries during the fourth quarter.